1. International HR - 2 1

2. Causes of Expatriate Assignment Failure
Family adjustment
Lifestyle issues
Work adjustment
Bad selection
Poor performance
Other opportunities arise
Business reasons
Repatriation issues

3. Training and Development
Essential training program content to prepare employees for working internationally:
Language training
Cultural training
Assessing and tracking career development
Managing personal and family life
Repatriation
Culture shock
Perpetual stress experienced by people who settle overseas.

4. Preparing for an International Assignment
To prepare for an international assignment, one should become acquainted with the following aspects of the host country:
Social and business etiquette
History and folklore
Current affairs, including relations between the host country and the United States
Cultural values and priorities
Geography, especially its major cities
Sources of pride and great achievements of the culture
Religion and the role of religion in daily life
Political structure and current players
Practical matters such as currency, transportation, time zones, and hours of business
The language

5. Training Methods
Reviewing available information about the host company: books, magazines, video tapes.
Conversations with host country natives.
Sensitivity training to become familiar with the customs and overcome prejudices.
Temporary assignments to encourage shared learning.

6. Assessing and Tracking Career Development
Developmental and Career Advantages of an International Assignment:
Increases the expatriate’s responsibilities and influence within the corporation
Provides a set of unique experiences beneficial to both the individual and the firm
Enhances understanding of the global marketplace
Offers the opportunity to work on a project important to the organization

7. Repatriation Checklist
Before they go:
Make sure there is a clear need for the international assignment. Don’t send someone abroad unnecessarily. Develop a clear set of objectives and expectations and time frames in which they should be met.
Make sure that your selection procedures are valid. Select the employee and also look at and involve the employee’s family.
Provide (or fund) language and cultural training for the employee and the employee’s family.
Offer counseling and career assistance for the spouse.
Establish career planning systems that reward international assignments and lead to promotion and knowledge sharing.

8. Repatriation Checklist (cont’d)
While they are away:
Jointly establish a developmental plan that focuses on the goal to be achieved.
Tie performance objectives to the achievement of the goal.
Identify mentors who can be a liaison and support person from home.
Keep communications open so that the expatriate is aware of job openings and opportunities.
Arrange for frequent visits back home (for the employee and the family). Make certain they do not lose touch with friends and relatives.

9. Repatriation Checklist (cont’d)
When they come back home:
Throw a “welcome home” party and arrange for a meeting with other former expatriates.
Offer counseling to ease the transition.
Arrange conferences and presentations to make certain that knowledge and skills acquired away from home are identified and disseminated.
Set up an expatriate database to help other employees who go abroad later.
Get feedback from the employee and the family about how well the organization handled the repatriation process..

10. Global Compensation Challenges
Different countries have different norms for employee compensation:
Financial (money) incentives versus nonfinancial incentives (prestige, independence, and influence)
Individual rewards versus collectivist concerns for internal equity and personal needs
General rule:
Match the rewards to the values of the local culture—create a pay plan that supports the overall strategic intent of the organization but provides enough flexibility to customize particular policies and programs to meet the needs of employees in specific locations.

11. Hourly Wages in Different Countries*
COUNTRY
$/HOUR
Norway
41.05
Denmark
35.45
Germany
34.21
Netherlands
32.34
Belgium
31.85
Sweden
31.80
Switzerland
30.67
Austria
30.46
Finland
29.90
Luxembourg
27.74
United Kingdom
27.10
Australia
26.14
Ireland
25.96
Canada
25.74
Italy
25.07
France
24.90
United States
23.82
COUNTRY
$/HOUR
Japan
20.20
Spain
18.83
Greece
16.10
Korea, Republic of
14.72
New Zealand
14.47
Israel
12.98
Singapore
8.55
Portugal
7.65
Czech Republic
6.77
Taiwan
6.43
Hungary
6.29
Hong Kong SAR (1)
5.78
Poland
4.99
Brazil
4.91
Mexico
2.75
Philippines
1.07
Sri Lanka
0.54
*Hourly compensation costs in U.S. dollars for production workers in manufacturing.

12. Compensation of Host-Country Employees
Hourly wages can vary dramatically from country to country.
Pay periods are different.
Seniority may be an important factor.
High pay rates can upset local compensation practices.
Bonuses, profit-sharing, benefits and paid leave may be more extensive and legally required.

13. Compensation of Host-Country Managers
Global Compensation System
A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm’s domestic employees but adjusted for local differences

14. Expatriate Compensation
Provide the expatriate with a disposable income that is equivalent to what he or she would receive at home.
Provide and explicit “add-on” incentive for accepting an international assignment.
Compensation country-based or company-based?
Employment laws
Double taxation / FICA / Value Added Taxes
Currency stability
Benefits and Health Care
Firms can use compensation packages to enhance the effectiveness of expatriate assignments. However, compensation policies can create conflict if locals compare their pay packages to the expatriate’s and conclude that they are being treated unfairly. Listed here are some considerations when designing a compensation package for expatriates.

15. Expatriate Compensation Systems (cont’d)
Localization
Adapting pay and other compensation benefits to match that of a particular country
Reduces resentment among local staff members if they are earning significantly less.
Other Issues
Adequacy of medical care
Personal security
Compensation policies of competitors

16. Performance Appraisal of International Managers
Who Should Appraise Performance?
Home-country evaluations
Host-country evaluations
Adjusting Performance Criteria
Augmenting job duties
Individual learning
Organizational learning
Providing Feedback
Debriefing interview

17. The Labor Environment Worldwide
International Differences in Unions:
The level at which bargaining takes place (national, industry, or workplace)
The degree of centralization of union-management relations
The scope of bargaining (parties and issues)
The degree to which government intervenes
The degree of unionization and union strength
The political affiliations of unions